Neighborhood Finance Corporation

Refinance Loan

Refinance Your Mortgage and Finance the Home Improvements You've Been Putting Off

If you already own a home in an NFC lending area, the NFC Refinance Loan allows you to refinance your existing mortgage while financing eligible repairs, renovations, or energy-efficient upgrades, all through one streamlined loan.

Unlike a traditional refinance, NFC helps qualified homeowners finance improvements based on the future value of their home after renovations, making it easier to complete projects that increase comfort, safety, efficiency, and long-term equity.

Program Features

Designed to help homeowners refinance, renovate, and invest in their home's future.

Forgivable renovation loan up to $15,000 20% of the forgivable loan forgiven annually over five years of owner occupancy

Finance up to 95% of your home's projected value after improvements

First mortgage up to 80% loan-to-value Competitive fixed interest rates

Second loan up to 95% loan-to-value at 2% interest Up to 20-year term for additional financing needs

No Private Mortgage Insurance (PMI)

Renovation financing included with your refinance

Available to homeowners and eligible contract-for-deed buyers

Why Homeowners Choose an NFC Refinance Loan

More than refinancing your mortgage, NFC helps you invest in your home's future.

Unlock Your Home's Equity Finance repairs and improvements using your home's projected value after renovations—not just its current appraised value.

Avoid Private Mortgage Insurance (PMI) Even with higher loan-to-value financing, eligible borrowers can refinance without the added cost of PMI.

Increase Your Home's Value From major repairs to modern updates, eligible improvements help increase your home's value while enhancing comfort and functionality.

Reduce Your Out-of-Pocket Costs Qualified homeowners may receive up to $15,000 in forgivable renovation assistance, lowering the overall cost of completing important projects.

One Loan. One Team. One Simple Process. Refinance your mortgage and finance eligible improvements with one local lending partner dedicated to helping homeowners succeed.

Home Refinance Rates

Term

30 Year

Interest Rate

7.125%

APR (Annual Percentage Rate)

7.412%

Term

15 Year

Interest Rate

6.5%

APR (Annual Percentage Rate)

6.953%

Eligibility Requirements

The NFC Advantage Refinance Loan is available to qualified homeowners who meet program guidelines.

To qualify:

Your home must be located within an NFC lending area.

The property must be your primary residence.

You must currently own the home or be purchasing through an eligible contract-for-deed arrangement.

Applicants must meet underwriting and loan approval requirements.

Renovation work must be completed by licensed independent contractors.

NFC must be the primary mortgage lender to receive full program benefits.

View NFC Lending Area Map

Important Program Guidelines

To receive the full benefits of the NFC Advantage Refinance Loan:

The forgivable renovation loan requires continued owner occupancy.

20% of the forgivable loan is forgiven each year over five years. If the home is sold or no longer owner-occupied before the forgiveness period ends, the remaining balance must be repaid.

All renovations must be approved before work begins and completed after loan closing.

The program is designed to support neighborhood revitalization while helping homeowners preserve and improve their homes.

Eligible Home Improvements

Your refinance loan can include financing for a wide variety of home repairs and improvements that enhance your home's safety, comfort, efficiency, and long-term value.

Eligible projects include (not limited to):

Heating and cooling (HVAC)
Electrical and plumbing upgrades
Energy-efficiency improvements
Insulation and weatherization
Roof replacement or repair
Foundation repairs
Windows and doors
Exterior siding
Sidewalks and driveways
Drainage and grading improvements
Interior remodeling
Kitchen and bathroom renovations
Home additions
Accessibility improvements
Aging-in-place modifications
Accessory Dwelling Units (ADUs)
Garage construction or repair (maximum 24' × 24')

Important: Home improvements cannot begin until your NFC refinance loan has closed. Work completed before closing is not eligible for reimbursement.

All repairs must be completed by licensed independent contractors. Contractor bids are required before loan approval.

Visit the Contractors Resource page to learn more about the complete requirements for the Bid Process.

How the Refinance Process Works

Verify your home is located within an NFC lending area and identify the repairs or improvements you'd like to make.

Obtain contractor bids for your planned improvements.

Meet with an NFC Loan Originator.

NFC evaluates your home's projected value after renovations to determine financing.

Close on your refinance loan and begin approved improvements.

Get Started on Your Home Improvement Journey

Meet with an NFC Loan Originator to discuss your refinance goals and renovation plans.

Confirm Eligibility

Verify your home is located within the NFC lending area and review available financing options.

View Map

Review Rates & Estimate Payments

Use our mortgage calculator and current interest rates to understand your refinance options.

Rates & Calculators

Apply with Confidence

Complete your refinance application knowing you'll have a local lending team guiding you from application through project completion.

Learn More

Ready to Refinance and Improve Your Home?

Whether you're updating an aging home, improving energy efficiency, completing needed repairs, or increasing your home's value, the NFC Advantage Refinance Loan provides flexible financing and local guidance to help you reach your goals.